Organized Retail Crime: The Retail Threat & How to Stop It with Tech

This post was originally published on LinkedIn by our gStore GM, Troy Siwek. Connect with or follow Troy here for more insightful content.

Organized retail crime has surged dramatically in the post-COVID era, posing significant challenges to retailers across the United States. This rise in sophisticated theft operations has pushed businesses and governments to seek more robust and innovative solutions. Among the most promising tools in this fight are RFID technology and in-store video surveillance systems, which, when combined, can offer a comprehensive approach to clamping down on organized crime syndicates.

Shoplifting vs. Organized Retail Crime

Before diving into solutions, it’s important to differentiate between shoplifting and organized retail crime. Shoplifting typically involves individuals stealing items for personal use or resale in small quantities. It is often spontaneous and less coordinated.

In contrast, organized retail crime (ORC) involves professional crime rings that systematically target retail stores to steal large quantities of goods. These syndicates often resell stolen items through online marketplaces or other channels. ORC is highly organized, with groups using sophisticated techniques and strategies to evade detection and maximize their thefts. The economic impact of ORC is far greater than that of individual shoplifting incidents.

The surge in Organized Retail Crime post-COVID

The COVID-19 pandemic has left a lasting impact on the retail landscape, including an alarming increase in organized retail crime. Statistics reveal a sharp uptick in theft, with organized crime syndicates becoming more brazen and sophisticated. Factors contributing to this rise include economic hardships, changes in shopping behavior, and reduced in-store security during the pandemic.

Retailers are feeling the impact. Losses from theft not only affect their bottom line but also disrupt supply chains and increase prices for consumers. The need for effective solutions to combat these crimes has never been more urgent.

Understanding RFID technology

Radio Frequency Identification (RFID) technology is a powerful tool in the retail sector. RFID uses electromagnetic fields to automatically identify and track tags attached to objects. Unlike traditional barcodes, RFID tags do not require a direct line of sight to be read, allowing for more efficient and accurate inventory management.

How RFID works for loss prevention:

• Real-Time Tracking: RFID tags on merchandise communicate with sensors to track the movement of goods within the store.
• Alerts: If tagged items are moved out of designated areas or handled suspiciously, the system can send immediate alerts to store personnel.
• Inventory Accuracy: RFID helps maintain accurate inventory records, quickly identifying discrepancies that may indicate theft.

RELATED VIDEO: AI + RFID for Retail Store Loss Detection

Integration of in-store video technology

In-store video surveillance systems have long been a staple in retail security. Modern video technology offers high-definition footage, facial recognition, and advanced analytics. These systems can monitor store activity in real time, alerting security personnel to potential thefts and providing valuable evidence for investigations.

Combining RFID and video technology

The synergy between RFID and video technology can significantly enhance a retailer’s ability to combat organized retail crime. Here’s how:

Real-time alerts:

• RFID systems can trigger real-time alerts when tagged items are moved suspiciously or leave designated areas.
• In-store cameras can immediately focus on these areas, allowing security teams to respond swiftly.

Data correlation:

• By correlating RFID data with video footage, retailers can track the movement of goods and identify patterns associated with theft and potentially predict where the theft rings will hit next.
• This combined data can help build comprehensive cases against crime syndicates by definitively associating the stolen products to the video evidence against the perpetrators
• If the RFID tags stay on the product post-theft, they will help law enforcement prove the origin of the products in possession of the theft gangs or their partners.
• RFID technology can provide precise information on inventory levels and locations, which, when paired with video surveillance, ensures continuous monitoring and reduces blind spots.

Challenges of implementing RFID and video technology

While RFID and video surveillance offer substantial benefits, their implementation is not without challenges:

• Cost: The initial investment in RFID tags, sensors, and high-quality video cameras can be significant. Smaller retailers may find these costs prohibitive without financial assistance. Some solution providers are offering financing options like RFID as a service to help retailers with the up-front investments.
• Integration Complexity: Integrating RFID and video technology into existing store infrastructure requires careful planning and technical expertise. Retailers need to ensure compatibility and seamless operation between the two systems.
• Data Management: Handling the large volumes of data generated by these technologies necessitates robust data management solutions. Retailers must invest in the necessary software and personnel to analyze and act on this data effectively.

Despite these challenges, the long-term benefits of reduced theft and improved inventory management far outweigh the initial investments.

Looking ahead: The future of retail security

Advancements in AI and machine learning are expected to further enhance the capabilities of RFID and video surveillance systems. These technologies will offer even more precise data analysis and predictive insights, making it increasingly difficult for organized crime syndicates to operate.

The rise in organized retail crime post-COVID has necessitated a robust response from both retailers and governments. Combining RFID technology with in-store video surveillance offers a powerful solution to this growing problem. By leveraging these technologies, retailers can not only protect their assets but also contribute to a safer shopping environment for everyone.